Insurers Must Cover $6M Fax Blast Deal, Judge Says

Law360, New York (November 1, 2013, 4:30 PM EDT) -- An Illinois judge rebuffed two insurers Thursday on arguments that an event planning firm sold them out by paying to settle fax-spamming claims that had previously been dismissed when striking a $6 million class action deal, calling the agreement reasonable and ordering indemnification.

U.S. District Judge Joan Humphrey Lefkow said that M&M Retail Center Inc. was acting with a reasonable anticipation of its liabilities when it struck a $6 million settlement of underlying Telephone Consumer Protection Act litigation without input from Maxum Indemnity Co. and Security...
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